Hyperliquid’s JELLY Mess: FTX 2.0 or Just Another Crypto Circus? 🎪

by

So, Hyperliquid decided to play Jenga with the JELLY token, and guess what? The whole thing collapsed. Gracy Chen, the CEO of Bitget, is not impressed. She’s calling Hyperliquid’s moves “immature, unethical, and unprofessional.” Honestly, it’s like watching a toddler try to run a hedge fund. 🍼

After Hyperliquid (HYPE) delisted JELLY following a $10.6 million loss and a near-liquidation of its treasury, Chen went full Larry David on them. She’s questioning their integrity, calling them out for running a decentralized exchange like an offshore casino with no KYC or AML checks. 🎰

Chen took to X to vent her frustrations, saying:

“Despite presenting itself as an innovative decentralized exchange with a bold vision, Hyperliquid operates more like an offshore CEX with no KYC/AML, enabling illicit flows and bad actors.”

Translation: Hyperliquid is the crypto equivalent of a shady back-alley poker game. 🃏

Chen even dropped the “FTX 2.0” bomb, referencing the infamous collapse of FTX in 2022. Ouch. But she’s not alone in her skepticism. Arthur Hayes, the founder of BitMEX, also chimed in with his two cents:

$HYPE can’t handle the $JELLY

Let’s stop pretending hyperliquid is decentralised

And then stop pretending traders actually give a fuck

Bet you $HYPE is back where is started in short order cause degens gonna degen

— Arthur Hayes (@CryptoHayes) March 26, 2025

Basically, Hayes is saying Hyperliquid is a dumpster fire, and traders are just here for the popcorn. 🍿

Here’s the kicker: Hyperliquid halted the JELLY market after a $5 million short bet got liquidated, sparking rumors of a coordinated pump scheme. The JELLY price shot up 230% in an hour, leaving Hyperliquid with a $10.6 million loss. If it had gone further, the loss could’ve ballooned to $240 million. Hyperliquid’s validators decided to pull the plug, citing “suspicious market activity.” Suspicious? You don’t say. 🕵️‍♂️

Chen wasn’t done, though. She called out Hyperliquid’s “alarming flaws,” like mixed vaults and unrestricted position sizes, which she says make it a playground for manipulation. She warned:

“Unless these issues are addressed, more altcoins may be weaponized against Hyperliquid—putting it at risk of becoming the next catastrophic failure in crypto.”

In other words, Hyperliquid is one bad decision away from becoming a cautionary tale. 📉

And if that wasn’t enough, blockchain sleuth ZachXBT revealed that a Hyperliquid whale making high-leverage short bets was actually a cybercriminal using stolen funds. So, not only is Hyperliquid a mess, but it’s also attracting the wrong crowd. 🦈

Unsurprisingly, the HYPE token took a nosedive after all this drama. So, is Hyperliquid the next FTX? Or just another crypto train wreck? Either way, grab your popcorn and enjoy the show. 🍿🎢

Read More

2025-03-26 21:43